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The Flatiron Building, an iconic triangular-shaped skyscraper in New York, was sold at an auction for $190 million after a court order. The 22-story building was constructed in 1902 and is famous for its resemblance to a clothes iron. The winning bid was almost four times the initial price of $50 million, thanks to intense competition among bidders.
According to reports, Jacob Garlick, the winner of the auction for the Flatiron Building, has not disclosed his plans for the historic structure. The building, located at the intersection of Fifth Avenue, Broadway, and East 22nd Street in Manhattan, has been vacant since 2019 when its last tenant, MacMillan Publishers, moved out. Prior to the auction, a group of real estate companies who owned the building had disputes over renovation plans and future tenants, which resulted in a legal battle. The judge ultimately ordered the building to be put up for auction. Matthew Mannion from Mannion Auctions, who facilitated the sale, stated that Garlick is required to pay ten percent of the winning bid by the close of business on Friday, or the building would be awarded to the second-highest bidder.
On Wednesday, the Flatiron Building was sold, and it appeared that way for a few days. Jacob Garlick emerged as the highest bidder at the auction with a bid of $190 million, which was a big surprise to Jeffrey Gural. Gural’s family firm was part of a four-owner group that already owned 75 percent of the building, and they were expected to be the most likely buyers of the remaining 25 percent. The sale was ordered by the court to resolve the long-standing stalemate between Gural’s group and the fifth owner, Nathan Silverstein. According to auctioneer Matthew Mannion, there were 11 registered bidders at the start of the auction, but only four or five of them actually placed any bids.
The bidding for the Flatiron Building started at around $160 million and eventually turned into a competition between two individuals: Gural, a prominent figure in the New York real estate industry, and Garlick, a Virginia-based investor with little public visibility but who owns a few buildings in the area. When Garlick emerged as the winner, he fell to his knees in excitement and spoke to NY1, expressing that owning the building had been his lifelong dream since he was 14 years old. He added that he and his team would work tirelessly to maintain the building’s historical significance. However, he has not made any further public statements or spoken with any other parties involved in the transaction.
He missed the deadline to pay the 10 percent down payment that was required on Friday. He was given an extension for a day or two, but he failed to meet that deadline too. Peter Axelrod, the lawyer appointed to mediate between the building’s conflicting owners, expressed his belief to the Times that Garlick either did not have the necessary funds or realized that he had bid too high and decided not to continue with the purchase.
According to Mannion, the auction for the Flatiron Building was uncommon. Typically, prospective buyers of a property of this size would have to provide several million dollars upfront to prove their legitimacy. However, in this case, although buyers were required to register beforehand, they were not required to pay upfront. Mannion, who has conducted numerous auctions, expressed his surprise, saying that the number of auctions that did not require an initial payment could be counted on one hand. It is unclear if Garlick will still be liable for some of the costs associated with the auction, legal fees, and other expenses that may have caused complications, as per the terms of the sale.
Since Garlick failed to complete the purchase, the Flatiron Building is now being offered to the second-highest bidder, Gural, at a price of $189.5 million. However, it is highly unlikely that Gural will accept the offer since he was outbid by about $30 million in the final moments. It is expected that the building will go back up for auction, and Gural will have another chance to purchase it at a lower price.
Gural suggested to the Times that Garlick may have been working secretly on behalf of his soon-to-be-ex partner, Silverstein, who could b
enefit from a higher final price. It is unclear why Garlick bid at the auction without having the necessary funds to complete the purchase.
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